|
Post by The Walk of the Penguin Mich on Jun 27, 2020 11:56:02 GMT -5
Sorry for your loss. Given that you have no mortgage , 2225/month seems to be high especially for one person. Can you track this number for a few months and see if any expense can be reduced? Do you live in a VHCOLA where taxes and insurance are high? Even a non VHCOL area can have taxes and insurance that will eat up $5000/year. $2225/mo isn’t that much, especially when you need to buy health insurance. When I lived alone 10 years ago, I lived off of about 2/3 my income and it cost me about $2000/mo. That included a $600/mo rent payment, with health insurance covered.
|
|
jmlrn
New Member
Joined: Jun 17, 2020 20:39:47 GMT -5
Posts: 44
|
Post by jmlrn on Jun 27, 2020 12:37:21 GMT -5
Sorry for your loss. Given that you have no mortgage , 2225/month seems to be high especially for one person. Can you track this number for a few months and see if any expense can be reduced? Do you live in a VHCOLA where taxes and insurance are high? Here is my breakdown: Cell phone $129 (paying loan for new phone included; TV $50; Internet $92, Electric $187; Heating $97;Car loan $361; Car & Homeowners insurance bundled $188; City Homeowner taxes $335; Gym $22: Health Insurance $ 256: Garbage fee $18;Interest free loan $95;Dental insurance $33; Eating out $50; Petrol $40; Groceries $200; Water bill $40; Salon $100; Home repairs $183 (1% of home value) So $2225 is an estimate. I tried to take an average off the electric & heating bills for instance. Not always $100 at the salon. My grocery bill is sometimes higher but that includes cleaning supplies etc. I also bake alot to give to friends & family.
|
|
Blonde Granny
Junior Associate
Joined: Jan 15, 2013 8:27:13 GMT -5
Posts: 6,919
Today's Mood: Alone in the world
Location: Wandering Aimlessly
Mini-Profile Name Color: 28e619
Mini-Profile Text Color: 3a9900
|
Post by Blonde Granny on Jun 27, 2020 12:56:19 GMT -5
This won't be popular, but I think you need to slow down. I've been there and remember quite well that I felt like the my world needed to be fixed as soon as possible.
First: Get a price on a head stone and choose the least expensive you can find. Your DH won't care because.....just because. See if a local person that does head stones has a pay as you go plan....this might be your first attempt at the " I'm just a widow and I only have a small about of money for this".....I frequently use that line and it works wonders (for a lot of things).
If I had to choose between the ceiling and the wall, I'd probably opt for the wall....but also, don't forget the magic words and find someone who can do all of them and give you a discount too. Remember, those holes will still be there in 6 months. In the meantime, you've given yourself some time to save some money and work with getting your finances in order.
If I had to choose between the wall, ceiling or head stone, the head stone would be the last on my list.
|
|
saveinla
Junior Associate
Joined: Dec 19, 2010 2:00:29 GMT -5
Posts: 5,222
|
Post by saveinla on Jun 27, 2020 13:05:32 GMT -5
Sorry for your loss. Given that you have no mortgage , 2225/month seems to be high especially for one person. Can you track this number for a few months and see if any expense can be reduced? Do you live in a VHCOLA where taxes and insurance are high? Here is my breakdown: Cell phone $129 (paying loan for new phone included; TV $50; Internet $92, Electric $187; Heating $97;Car loan $361; Car & Homeowners insurance bundled $188; City Homeowner taxes $335; Gym $22: Health Insurance $ 256: Garbage fee $18;Interest free loan $95;Dental insurance $33; Eating out $50; Petrol $40; Groceries $200; Water bill $40; Salon $100; Home repairs $183 (1% of home value) So $2225 is an estimate. I tried to take an average off the electric & heating bills for instance. Not always $100 at the salon. My grocery bill is sometimes higher but that includes cleaning supplies etc. I also bake alot to give to friends & family. So if we talk about an average income of 2500 with expenses equaling what you bring in, there is nothing to save. That's not a bad thing, but not good either if you have unexpected expenses. Are you planning to work until 65 when you start your pension and can go on medicare? How much longer do you have to pay on that interest free loan? I agree with BG that the headstone can wait. You need to take a deep breath, relax and check to see what happens in a couple of months. Please don't make too many changes. You need to get a handle on the expenses and save any extra money that comes in for now. Please take care of yourself. It is very hard to lose someone close to you, so be good to yourself for now.
|
|
jmlrn
New Member
Joined: Jun 17, 2020 20:39:47 GMT -5
Posts: 44
|
Post by jmlrn on Jun 27, 2020 15:04:54 GMT -5
My question is more towards when to take my retirement & survivor benefits based on previous posts I've made & what to do with the ROTH & traditional IRAs I spoke about.
Right now contemplating taking survivor benefits anywhere from 62-65 and continuing to work some but less than I am now & collecting my retirement which is higher at 66 or 67. Honestly I feel waiting till 70 will only result in 6-10 yrs of collecting. I've worked like a slave for that retirement money & all the savings I have & I intend to use it. There are no heirs.
|
|
Deleted
Joined: Apr 26, 2024 0:58:03 GMT -5
Posts: 0
|
Post by Deleted on Jun 27, 2020 15:34:11 GMT -5
I think you put up some numbers and then took them down- the bottom line on your savings plan and the CDs is pretty decent but your rates of return (as you have said) are piddly and sure won't keep up with inflation. If you had a zillion dollars that would be fine, but you don't. Most advisors say a safe withdrawal rate is 4% the first year, increased by inflation every year after that, but that 4% is based on the assumption that some portion of your portfolio (6%, I think) is in stocks. I have no idea how that works if you're 100% fixed income but it's a heck of a lot less than 4%.
Let me go out on a limb here. You need to educate yourself about investing. Do you know anyone who can help you? This is a crazy time in the market and there will be volatility. I sure can't tell you what to run out and buy because it will likely go down (even if it recovers later) and you have to live with the consequences. If you don't know anyone you can trust, get some of the investment-related "Dummies" books out of the library and putting some of your money into stock ETFs. I like that series because the assume no previous knowledge, they explain things clearly and they have a sense of humor.
Good luck- there are plenty of women left in your situation and the most important thing is not to make any fast decisions.
|
|
Lizard Queen
Senior Associate
103/2024
Joined: Jan 17, 2011 22:19:13 GMT -5
Posts: 14,659
|
Post by Lizard Queen on Jun 27, 2020 15:42:23 GMT -5
4% gets you 25 years with no gains/no increase for inflation. I would throw the numbers in a spreadsheet for her, but hunching over a computer all week has screwed up my neck/shoulders. I'll see what I can come up with if I'm feeling better later.
|
|
countrygirl2
Senior Associate
Joined: Dec 7, 2016 15:45:05 GMT -5
Posts: 16,893
|
Post by countrygirl2 on Jun 27, 2020 15:44:21 GMT -5
If your husband was a veteran, they will supply a small plaque for no cost I believe. You can talk to a VA service officer and see, usually at the county courthouse, but that was what was done. It was done so their graves were not left unmarked.
Hubs threw a fit but I bought our headstone when he was still working and had it set, was not cheap. It is engraved with birth dates, he said people will think he is dead, I said no they won't. When he is deceased will order the plaque and have it set in the back. I also had our kids names and ate of birth put on the back. Will help if anyone ever does genealogy some day. I also bought our DD's and had it set, so all that is done. Didn't want to leave it for others to do.
|
|
Lizard Queen
Senior Associate
103/2024
Joined: Jan 17, 2011 22:19:13 GMT -5
Posts: 14,659
|
Post by Lizard Queen on Jun 27, 2020 16:46:57 GMT -5
You mentioned your DH had about 75k in an IRA in CD's, and mentioned again 75k I'm laddered CDs. Is that an additional 75k, so $150k in CDs altogether?
|
|
jmlrn
New Member
Joined: Jun 17, 2020 20:39:47 GMT -5
Posts: 44
|
Post by jmlrn on Jun 27, 2020 18:04:11 GMT -5
If your husband was a veteran, they will supply a small plaque for no cost I believe. You can talk to a VA service officer and see, usually at the county courthouse, but that was what was done. It was done so their graves were not left unmarked. Hubs threw a fit but I bought our headstone when he was still working and had it set, was not cheap. It is engraved with birth dates, he said people will think he is dead, I said no they won't. When he is deceased will order the plaque and have it set in the back. I also had our kids names and ate of birth put on the back. Will help if anyone ever does genealogy some day. I also bought our DD's and had it set, so all that is done. Didn't want to leave it for others to do. Not a veteran. We have the headstone I just need it engraved with his name & dates.
|
|
jmlrn
New Member
Joined: Jun 17, 2020 20:39:47 GMT -5
Posts: 44
|
Post by jmlrn on Jun 27, 2020 18:04:56 GMT -5
You mentioned your DH had about 75k in an IRA in CD's, and mentioned again 75k I'm laddered CDs. Is that an additional 75k, so $150k in CDs altogether? 150K total
|
|
Lizard Queen
Senior Associate
103/2024
Joined: Jan 17, 2011 22:19:13 GMT -5
Posts: 14,659
|
Post by Lizard Queen on Jun 27, 2020 18:39:56 GMT -5
You mentioned your DH had about 75k in an IRA in CD's, and mentioned again 75k I'm laddered CDs. Is that an additional 75k, so $150k in CDs altogether? 150K total Do the pensions increase with inflation at all, or are they fixed? Is yours subject to increase as you continue to work?
|
|
Peace77
Senior Member
Joined: Dec 29, 2010 1:42:40 GMT -5
Posts: 3,923
|
Post by Peace77 on Jun 27, 2020 21:30:14 GMT -5
Peace77, the $13k will definitely go down as I have to get DH monument engraved, install a new ceiling in the bathroom & repair a huge hole in the wall of my bedroom that had to be accessed to fix a leak in the shower pipes. I'd be afraid just to leave $5K as the possibility of going weeks without a paycheck is real. You can always transfer funds back to your checking account. But, sure, go ahead and take care of the home repairs and headstone.
|
|
jmlrn
New Member
Joined: Jun 17, 2020 20:39:47 GMT -5
Posts: 44
|
Post by jmlrn on Jun 27, 2020 22:20:39 GMT -5
Do the pensions increase with inflation at all, or are they fixed? Is yours subject to increase as you continue to work? No the pensions are fixed
|
|
CCL
Junior Associate
Joined: Jan 4, 2011 19:34:47 GMT -5
Posts: 7,594
|
Post by CCL on Jun 28, 2020 4:22:45 GMT -5
I think you put up some numbers and then took them down- the bottom line on your savings plan and the CDs is pretty decent but your rates of return (as you have said) are piddly and sure won't keep up with inflation. If you had a zillion dollars that would be fine, but you don't. Most advisors say a safe withdrawal rate is 4% the first year, increased by inflation every year after that, but that 4% is based on the assumption that some portion of your portfolio (6%, I think) is in stocks. I have no idea how that works if you're 100% fixed income but it's a heck of a lot less than 4%. Let me go out on a limb here. You need to educate yourself about investing. Do you know anyone who can help you? This is a crazy time in the market and there will be volatility. I sure can't tell you what to run out and buy because it will likely go down (even if it recovers later) and you have to live with the consequences. If you don't know anyone you can trust, get some of the investment-related "Dummies" books out of the library and putting some of your money into stock ETFs. I like that series because the assume no previous knowledge, they explain things clearly and they have a sense of humor. Good luck- there are plenty of women left in your situation and the most important thing is not to make any fast decisions. Only 6% in stocks? That doesn't sound like enough. Maybe you meant 60?
|
|
Deleted
Joined: Apr 26, 2024 0:58:03 GMT -5
Posts: 0
|
Post by Deleted on Jun 28, 2020 6:43:27 GMT -5
Only 6% in stocks? That doesn't sound like enough. Maybe you meant 60? Oops- yes, I meant 60%! And the fixed pensions are even a bigger reason for the OP to educate herself and put some money into equities in one form or another.
|
|
movinonup
Established Member
Joined: Feb 7, 2013 7:44:03 GMT -5
Posts: 318
|
Post by movinonup on Jun 28, 2020 9:27:02 GMT -5
So if I have this right you have: 403b Stable Value | $381,000 | Taxable CDs | $75,000 | Inherited IRAs | $75,000 | Total Cash Assets | $531,000 |
I would not collect your Survivor Benefit while working due to the big reduction once you make more than $18,200. If we round your expenses to $2,500 monthly (I also decided to add the $3,000 monthly expense column), assume no inflation and that you will live to 90 (you believe unlikely based on your family history) we get: Age | Monthly Benefit | Monthly Withdrawal | Lifetime Withdrawal | Lifetime Withdrawal, Expense =$3K | 60 | $1,200 | $1,300 | $432,000 | $648,000 | 62 | $1,480 | $1,020 | $342,720 | $510,720 | 65 | $1,702 | $798 | $239,400 | $389,400 |
This doesn't include your pension, your husband's pension, any other income, or taxes. Even increasing your expenses to $3,000 monthly, you only fall short if you stop working today. If you don't have a major medical expense (yes, a very big if), you should have plenty of money, even with 100% in a stable value fund. This is an extremely simplistic analysis, if you can call it that, but I think it helps to see some numbers laid out for you in table form. -movinonup
|
|
jmlrn
New Member
Joined: Jun 17, 2020 20:39:47 GMT -5
Posts: 44
|
Post by jmlrn on Jun 28, 2020 11:09:09 GMT -5
Thank you so much for laying it out like this. This really helps me understand!
|
|
movinonup
Established Member
Joined: Feb 7, 2013 7:44:03 GMT -5
Posts: 318
|
Post by movinonup on Jun 28, 2020 11:17:16 GMT -5
Thank you so much for laying it out like this. This really helps me understand! You're welcome! Remember that I used 90 as your expected age, so the numbers that I came up with are a bit inflated versus your stated expected longevity. -movinonup
|
|
Blonde Granny
Junior Associate
Joined: Jan 15, 2013 8:27:13 GMT -5
Posts: 6,919
Today's Mood: Alone in the world
Location: Wandering Aimlessly
Mini-Profile Name Color: 28e619
Mini-Profile Text Color: 3a9900
|
Post by Blonde Granny on Jun 28, 2020 11:45:55 GMT -5
jmlrn: It's helpful too when everyone has all the facts. A few of us can now stop nagging you about the headstone. We are so happy to be able to help you, so just keep the questions coming. And don't forget about dinner ideas for 1 at Smart Spending, and other budgeting ideas etc. at WIRR.
|
|
Lizard Queen
Senior Associate
103/2024
Joined: Jan 17, 2011 22:19:13 GMT -5
Posts: 14,659
|
Post by Lizard Queen on Jun 28, 2020 17:30:07 GMT -5
A quick back of the envelope calculation of your cash/investments/pensions, assuming a 3% inflation rate gets me a current value of~$683,500. A 4% withdrawal on that would yield $27,340 per year. Keep in mind, that includes those pensions, but not social security. There's a bit of an issue with likely inflation rate exceeding gains on your investments. I've started working on a spreadsheet, but it's going to take some time. Someone else here may be able to answer your questions about when to take benefits quicker than me.
|
|